Seller financing can be a great idea or a terrible one, depending on a host of factors.
Generally, sellers are willing to owner finance when they would experience a significant taxable event and generally buyers seek owner financing when conventional financing is unavailable to them. Otherwise, conventional financing is almost always cheaper and easier.
But if you do choose to go the seller financing route, just be careful as there are many different forms. If the seller has a mortgage already and you are paying them in an arrangement called a ‘wrap,’ then you have considerable risk if the owners fails to make the payment. If you engage in a ‘contract for deed' arrangement, then you really haven’t purchased the home as the seller maintains control of the deed — and this can also be quite dangerous to the purchaser. And these are only two of numerous scenarios that comprise ‘owner financing’ — there are many others.
At the end of the day, owner financing can work, but only if the availability of traditional finance is unavailable. If you require owner financing to purchase, you end up limiting yourself in choice and introduce more risk than you should into the process. If the reason for needing owner financing is temporary, consider waiting, or consider sitting with a lender who understands grant programs and other lending packages that might not be as cheap as traditional finance, but offer more protecting than allowing the owner to be your lender.... more
Hello there. I can answer your questions....I've been in the mortgage business for 32 yrs and am a senior myself almost. A Reverse Mortgage is just liquidating a portion of your equity into tax-free cash and getting paying off your current mortgage. Right now with any other type of mortgage, you are leaving yourself open to losing your home. It only takes 2 missed payments now, and banks can start foreclosure proceedings. Regular mortgages and Home Equity lines are very dangerous for someone that's on a fixed income. A Reverse is also called a Home Equity Conversion Mortgage....HECM. They are the ONLY way to protect your most valueable asset...your home.
They get a bad rap because noone understands them that isn't in the business. Right now they are 95% of what i do. To most people they don't make sense. They think you're signing over the title to your home....which is false. You stay on title the entire time. If you have a spouse, your spouse is protected also...guarantying that you both can live in your home for the rest of your lives.
You're young at 62...you're a still a baby. You're entitled to 52.4% of the appraised value of your property. The older you are, the higher % you qualify for. Because you're so young, if you decide to own a 2nd home, that's fine. You may decide to sell your home. If that's the case, your title company will ask us for a payoff at the time of sale, the remaining equity is yours to take with you. I'm Carol Lynne ...I'm a paper girl ...I like to see numbers in front of me. Call me I can give you numbers ...the most IMPORTANT thing is that you have the facts to make a responsible decision. I'm an originating Branch Manager , i work 24/7...I'm happy to just give you the numbers or answer questions. Call me anytime...all my clients do, so you're not bothering me. I'm in Richmond, VA but I'm licensed in many other states too. Reach out to me...I'm happy to help. 703-622-4682... more